Mums And Mothers Life Assurance Policies Explained

life insurance for mums imageHaving life insurance coverage for the primary earner in a family is important – should this family member pass away, the remaining family will need some help keep up with bills and expenses.

According to Peter Thomas, stay-at-home parents should consider purchasing life insurance coverage as well. What many of us do not consider are all the valuable services stay-at-home mums and dads provide, such as childcare and cleaning. Should those services not be available, there will be added expenses.

Financial Protection through Life Insurance

Should the primary breadwinner of a household pass away, the family could face serious financial difficulties – the lack of income could mean having issues paying bills and keep up with other expenses.

One way a family can be protected from these hardships is through a life insurance policy. The policyholder pays a monthly premium for this coverage and, should he or she pass away, the insurance company would then provide financial assistance to the family through a lump sum or monthly payments.

Having this type of protection offers a policyholder peace of mind that his or her family will be taken care of when he or she is no longer there. Since life insurance coverage has become less expensive over the past decade, more and more primary earners are choosing this option to ensure their family will be financially set.

For example, an applicant who is 30 or 40 years old and does not smoke can qualify for a 20-year policy worth £200,000 for under £10 a month.

Why Stay-At-Home Mums & Dads Should Also Consider Life Insurance

Primary breadwinners choose life insurance to help supplement the income the family will lose should he or she pass away. But what about supplementing for all the valuable services that stay-at-home parents provide?

life assurance for mothers photoAlthough they are not contributing to the family financially, stay-at-home parents contribute by providing child care and home upkeep services that would otherwise be very expensive. Should a partner who stays home pass away, the remaining partner will then need to pay for those services.

With the large amount of expense associated with child care alone, having an insurance policy help to pay those costs can be very beneficial.

Consider a Joint Life Insurance Policy

While a stay-at-home parent having life insurance may be very important, juggling two policies may seem expensive. For those families who wish to cover both partners, joint life insurance policies can make doing so manageable and less expensive.

A joint life insurance policy only requires one monthly premium payment and will pay out when the first of the joint policy holders passes away. This type of policy can help ensure there will be financial support regardless of which partner passes away first.

Choosing How Much Coverage is Needed

There are a number of things that a family should consider when deciding how much life insurance coverage it needs. First, it is important to take into account the primary breadwinner’s income as well as the expenses that will need to be covered for an extended period of time.

Also, consider how much it will cost to pay for the services that a stay-at-home parent provides – make sure to consider the cost of caring for children until they become independent. If possible, consider choosing more coverage than needed to help anticipate any unforeseen expenses such as high medical bills or other emergencies.